Growth, Profits and Valuations of Fintech Companies

I have just finished reading an interesting paper by the folk at NovitasFTCL. Thank you to John Gilligan and Joe Singer of NovatisFTCL for sharing this research and well done to the team for researching and pulling the paper together.

Click here to read more on the Fintech Ireland website and follow the link to the NovitasFTCL website where you can request a complimentary copy of the report.

The paper is an analysis of the historical financial performance of 819 fintech companies in 14 sectors. It examines the relationship between financial performance and valuations by considering the correlations:

• between share price movement and underlying performance for public companies,
• between the valuations achieved for private companies and their underlying performance prior to exit  

I think that the research will be well received by owners and managers of, and investors in, Fintech companies on their relative performance, enabling them to see how others in the sector are doing in terms of growth and profitability. It should also prove useful to regulators trying to understand the burgeoning fintech industry. For example, take a look at the below slide.

Click here to read more on the Fintech Ireland website and follow the link to the NovitasFTCL website where you can request a complimentary copy of the report.